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Bundling is a term that usually seems to be a good thing with telecom and utility services – “lots of things all provided under one big package at a better price”. However, look out for the “gotchas”.
Todd talks about a few simple tips to look out for before signing any contract and how to review current contracts for services that you don’t need.
When you start looking at the services many different ways, you start trying to analyze why wouldn’t it be a better solution to have all of these unique capabilities of services through one price, one carrier, one contract, one service provider. While that sounds good on the surface and it is – you get a great rate for a lot of services that you are using. However, the “gotchas” are the deeper ones. Often times these are promo prices that are included for a small amount of time. Those prices increase over time or during the contract period.
You see commercials that raise the attention and awareness to those specific facts especially when you talk about cable companies and telecom providers that are offering bundled long distance services or promo rates for the first year. Then the next year comes into play and your rate goes up by two times especially in your business service contracts. So while bundling can be good, it can also be very bad because it can drop your rate initially but increase your rate over time based on your contractual agreement.
The other thing is there are services in bundled packages that are unnecessary or what we call “up-sold” or “oversold” such as unlimited long distance packages. Sounds great – PROTECTION! “I don’t have to be concerned that I’m going over my limit or over my minutes or my rate will increase”. Yet people don’t really look at the actual amount of utilization they have so in turn they buy way more than they need in a bundle package effect to decrease any possibilities that they may be in an overage or overpay situation. Yet they may never come close to the threshold they pay on a monthly basis. This is particularly important for you to understand prior to signing any agreement that bundles all these services together.
Lastly, but not least many of the service offerings in these bundled package include additional items that you are not aware of and are unnecessary. Because these bundled packages have – one price, one offer, one promo they make you feel like you’re getting much more than you need when often times there are charges inside that are not necessary that are costing you year-over-year.
So the advice with every person who engages in a contractual negotiation for their business is to really look at:
• What does this bundle offering contain?
• What are the unique individual components?
• How is it taxed?
• How is it priced?
• What are the benefits?
• What are the deterrents?
• Do I really need all of it or do I only need a portion of it and I just think it may be a better deal?
At the end the day it is your decision to make or you can contact us at Limitless Technology ~ Cost Reduction Specialist to help guide you through the process. www.limitlesstechnology.com
If you have questions regarding business cost reduction contacts Limitless Technology ~ Cost Reduction Specialists today.